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bigduckontax, Accountant

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I have a company that is just starting to make some real income.

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I have a company that is just starting to make some real income. However, the tax I am going to be paying is absolutely ridiculous. I obviously have my accountant but are there companies/consultants out there that specialise in advising me on what I can claim back for and ways of operating that will save me money?

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. Your company can, of course, clam all expenses and equipment through the medium of capital allowance against trading income. Also, if you pay yourself a salary that to can be used to offset Corporation Tax (CT). The balance will then be taxed at 20% CT. I really nedd a bit more information before I can fully respond to your query.

Hi Keith,Thanks for this and please accept my apologies for the delay in my reply. I am currently away travelling at the moment.I am a hypnotherapist however most of my income comes in the form of online sales on Amazon at the moment. Currently I am paying flat rate of 12% vat on sales on Amazon.co.uk and exempt from vat for sales on Amazon.com as it is in the USA.I have a website where people can purchase downloads and in the future video courses which will all be virtual courses rather than physical ones.This second side of the business is the one that I think will build substantially as I move forward. Being a virtual product I could of course be based anywhere (however I wish to stay in the UK).I have some very good friends who are now based permanently in Singapore. I was wondering if it might be possible or even worthwhile having a separate business set up that caters for the download side and base it outside of the U.K.?Thanks for your helpMark

Firstly Mark sales to the USA are not exempt from VAT, they are subject to VAT but being exports outside the EU are taxed at 0%. They are a zero rated supply, a small point. You can certainly consider having an offshore business, but remember that if you are using a tax haven then running it is big business and does not come cheap. However if your friends are prepared to muck in and can be trusted by all means go ahead. I would not wish to downplay the risk element of using such a business operation. Singapore has some of the lowest tax rates in the developed world and is thus attractive to outside investors. I do hope that I have been able to shed some more light on your situation.

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